19/08/2024 | Press release | Distributed by Public on 19/08/2024 15:41
August 19, 2024
Dear Shareholder:
We are pleased to report on the continued growth and development of Uwharrie Capital Corp and its subsidiaries. As of June 30, 2024, our total assets reached $1.1 billion, reflecting an 8.6% growth from June 30, 2023. Our total annualized return on equity improved to 17.6% as of June 30, 2024, up from 16.9% the previous year. Net income available to common shareholders for the six months ending June 30, 2024, was $4.3 million or $0.61 per share, a $419,000 increase over the $3.9 million or $0.54 per share reported for the same period in 2023.
Loan demand remains strong across all sectors of our lending portfolio and markets. Loans grew nearly 20% from June 30, 2023, to June 30, 2024, increasing our loan-to-deposit ratio to 62.5%. This growth has been achieved without compromising our credit standards; our underwriting and lending policies remain as thorough as ever. Our asset quality strength is evident in our low levels of past dues and non-accrual loans.
We continue to grow our core deposit base, allowing us to maintain our cost of funds expense and improve our net interest margin as a percentage of average assets to 3.40%. This is particularly notable as many of our peers are experiencing flat or declining net interest margins. Net interest margin remains the largest contributor to our net income. Other non-interest income sources, such as card services and wealth management, also continue to grow and diversify our earnings base.
New endeavors for our company include relocating our Mount Pleasant branch (Cabarrus County) to a more visible and accessible spot on Hwy 73. The new location, in the heart of Mount Pleasant, promises greater convenience for our customers. While we finalize the plans, we invite you to stay tuned for updates on our innovative, non-traditional branch design.
We are also excited to announce our partnership with Greenlight. This alliance allows us to offer a Uwharrie Bank-branded Greenlight app with a Greenlight Debit Card to families at no cost. Greenlight is a comprehensive money app for families, enabling kids to earn money through chores, set savings goals, and spend wisely. Parents have flexible control over limits and spending locations, receiving real-time notifications of their children's transactions. The app also includes features for setting up different ways for children to earn money, such as completing chores or engaging in gamified learning activities that teach age-appropriate financial lessons. We believe this partnership aligns perfectly with our core values of promoting financial literacy and introduces us to a new generation of customers. To learn more or to sign up for your family, please visit www.Uwharrie.com/Greenlight.
We are halfway through our 40th anniversary celebrations and have enjoyed celebrating our past and building on our future. We invite you to join us at your local branch and follow our journey on social media. We encourage you to keep referring your family and friends to join us as customers and shareholders. Together, we can build upon our 40 years of success and continue to thrive in the future. Your support is invaluable to us as we stay dedicated to making a meaningful impact-delivering a strong return on your investment while enhancing your communities.
Thank you for your continued trust and support.
Sincerely,
UWHARRIE CAPITAL CORP
/s/ Roger L. Dick
President and Chief Executive Officer
This Report may contain, among other things, certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including, without limitation, (i) statements regarding certain of the Company's goals and expectations with respect to earnings, income per share, revenue, expenses and the growth rate in such items, as well as other measures of economic performance, including statements relating to estimates of credit quality trends, and (ii) statements preceded by, followed by or that include the words "may," "could," "should," "would," "believe," "anticipate," "estimate," "expect," "intend," "plan," "projects," "outlook," or similar expressions. These statements are based upon the current belief and expectations of the Company's management and are subject to significant risks and uncertainties that are subject to change based on various factors (many of which are beyond the Company's control).
Uwharrie Capital Corp and Subsidiaries |
||||
Consolidated Balance Sheets (Unaudited) |
||||
June 30, |
June 30, |
|||
(Amounts in thousands except share and per share data) |
2024 |
2023 |
||
Assets |
||||
Cash and due from banks |
$ |
11,195 |
$ |
10,608 |
Interest-earning deposits with banks |
46,276 |
83,245 |
||
Securities available for sale |
350,764 |
324,484 |
||
Securities held to maturity (fair value $24,656 and $25,812, respectively) |
27,252 |
29,191 |
||
Less: allowance for credit losses on securities held to maturity |
(66 |
) |
(65 |
) |
Equity securities, at fair value |
324 |
303 |
||
Loans held for sale |
3,611 |
3,297 |
||
Loans held for investment |
636,738 |
534,364 |
||
Less: allowance for credit losses on loans |
(5,908 |
) |
(4,713 |
) |
Net loans held for investment |
630,830 |
529,651 |
||
Premises and equipment, net |
14,552 |
15,206 |
||
Interest receivable |
4,688 |
3,712 |
||
Restricted stock |
1,709 |
1,468 |
||
Bank-owned life insurance |
7,864 |
7,721 |
||
Deferred income tax benefit |
9,056 |
10,593 |
||
Loan servicing assets |
4,089 |
4,615 |
||
Other assets |
11,116 |
9,934 |
||
Total assets |
$ |
1,123,260 |
$ |
1,033,963 |
Liabilities |
||||
Deposits: |
||||
Demand, noninterest-bearing |
$ |
286,517 |
$ |
277,685 |
Interest checking and money market accounts |
391,245 |
426,997 |
||
Savings accounts |
95,208 |
98,118 |
||
Time deposits, $250,000 and over |
128,162 |
55,873 |
||
Other time deposits |
122,943 |
91,597 |
||
Total deposits |
1,024,075 |
950,270 |
||
Short-term borrowed funds |
6,400 |
932 |
||
Long-term debt |
29,123 |
29,066 |
||
Other liabilities |
11,530 |
12,135 |
||
Total liabilities |
1,071,128 |
992,403 |
||
Shareholders' Equity |
||||
Common stock, $1.25 par value: 20,000,000 shares authorized; |
||||
issued and outstanding or in process of issuance |
||||
7,068,577 and 7,057,847, respectively. |
||||
Book value per share $5.87 in 2024 and $4.29 in 2023 (1) |
8,836 |
8,823 |
||
Additional paid-in capital |
12,510 |
12,521 |
||
Undivided profits |
46,419 |
39,012 |
||
Accumulated other comprehensive loss |
(26,288 |
) |
(29,451 |
) |
Total Uwharrie Capital Corp shareholders' equity |
41,477 |
30,905 |
||
Noncontrolling interest |
10,655 |
10,655 |
||
Total shareholders' equity |
52,132 |
41,560 |
||
Total liabilities and shareholders' equity |
$ |
1,123,260 |
$ |
1,033,963 |
(1) Net income per share, book value per share and weighted average shares |
Uwharrie Capital Corp and Subsidiaries |
||||||||
Consolidated Statements of Income (Unaudited) |
||||||||
Three Months Ended |
Six Months Ended |
|||||||
June 30, |
June 30, |
|||||||
(Amounts in thousands except share and per share data) |
2024 |
2023 |
2024 |
2023 |
||||
Interest Income |
||||||||
Interest and fees on loans |
$ |
9,285 |
$ |
6,989 |
$ |
18,079 |
$ |
13,356 |
Interest on investment securities |
3,326 |
2,951 |
6,564 |
5,818 |
||||
Interest-earning deposits with banks and federal funds sold |
710 |
1,181 |
1,336 |
2,251 |
||||
Total interest income |
13,321 |
11,121 |
25,979 |
21,425 |
||||
Interest Expense |
||||||||
Interest paid on deposits |
4,097 |
2,712 |
7,826 |
4,828 |
||||
Interest paid on borrowed funds |
408 |
342 |
799 |
685 |
||||
Total interest expense |
4,505 |
3,054 |
8,625 |
5,513 |
||||
Net Interest Income |
8,816 |
8,067 |
17,354 |
15,912 |
||||
Provision for credit losses |
431 |
109 |
401 |
386 |
||||
Net interest income after provision for credit losses |
8,385 |
7,958 |
16,953 |
15,526 |
||||
Noninterest Income |
||||||||
Service charges on deposit accounts |
267 |
264 |
535 |
513 |
||||
Interchange and card transaction fees |
322 |
315 |
610 |
619 |
||||
Other service fees and commissions |
897 |
822 |
1,828 |
1,711 |
||||
Gain (loss) on sale of securities |
- |
9 |
(148 |
) |
(42 |
) |
||
Realized/unrealized gain (loss) on equity securities |
(19 |
) |
(23 |
) |
22 |
11 |
||
Income from mortgage banking |
606 |
891 |
1,440 |
1,585 |
||||
Other income |
153 |
408 |
268 |
271 |
||||
Total noninterest income |
2,226 |
2,686 |
4,555 |
4,668 |
||||
Noninterest Expense |
||||||||
Salaries and employee benefits |
5,145 |
4,932 |
10,359 |
9,676 |
||||
Occupancy expense |
429 |
432 |
854 |
885 |
||||
Equipment expense |
218 |
195 |
425 |
383 |
||||
Data processing |
203 |
204 |
433 |
408 |
||||
Loan costs |
51 |
98 |
84 |
198 |
||||
Professional fees and services |
262 |
179 |
526 |
437 |
||||
Marketing and donations |
339 |
342 |
705 |
724 |
||||
Software amortization and maintenance |
329 |
296 |
659 |
603 |
||||
Other operating expenses |
856 |
1,164 |
1,669 |
1,653 |
||||
Total noninterest expense |
7,832 |
7,842 |
15,714 |
14,967 |
||||
Income before income taxes |
2,779 |
2,802 |
5,794 |
5,227 |
||||
Provision for income taxes |
566 |
579 |
1,198 |
1,050 |
||||
Net Income |
$ |
2,213 |
$ |
2,223 |
$ |
4,596 |
$ |
4,177 |
Consolidated net income |
$ |
2,213 |
$ |
2,223 |
$ |
4,596 |
$ |
4,177 |
Less: net income attributable to noncontrolling interest |
(141 |
) |
(141 |
) |
(282 |
) |
(280 |
) |
Net income attributable to Uwharrie Capital Corp and common shareholders |
$ |
2,072 |
$ |
2,082 |
$ |
4,314 |
$ |
3,897 |
Net Income Per Common Share (1) |
||||||||
Basic |
$ |
0.29 |
$ |
0.29 |
$ |
0.61 |
$ |
0.54 |
Assuming dilution |
$ |
0.29 |
$ |
0.29 |
$ |
0.61 |
$ |
0.54 |
Weighted Average Common Shares Outstanding (1) |
||||||||
Basic |
7,093,666 |
7,215,163 |
7,108,070 |
7,215,891 |
||||
Assuming dilution |
7,093,666 |
7,215,163 |
7,108,070 |
7,215,891 |